Case study: ASOS and Topshop Essay

1543 Words 7 Pages
Report for supply chains of ASOS and Topshop

Word counts: 1273
11th March 2013
Table of Contents

1.0 Introduction……………………………………3

2.0 Overview and Demographics
2.1 ASOS …………………………………………4
2.2 Topshop ……………………………………4

3.0 Supply Chain
3.1 Supply Chain of ASOS ……………….. 5
3.2 Supply Chain of Topshop ………….. 7

4.0 Conclusion ………………………………………9

5.0 Bibliography …………………………………..10

1.0 Introduction

‘Fashion industry is characterised by short product life cycles, volatile and unpredictable demand, tremendous product variety, long and inflexible supply processes and a complex supply chain.’

(Sen, 2007, pp. 1)

Due
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The rise of e-commerce has been seen as a major threat to retailers (Burt and Sparks, 2003). In the case of ASOS, apart from being a retailer, its main core part of the supply chain is the order-picking centre (Fernie, 2009) (see Table 2). The role of ASOS was blurry as it tried to backward integrate the function of wholesalers. However, due to a serious fire in 2005, the company had changed to a logistic service company alongside well-established delivery services (Meadows, 2007). The advantage of it is to save investment costs by outsourcing production cost to partnered brands (Fernie, 2009). The initial benefit of it is a 32% reduction of cost in 2006 (Meadows, 2007).

Table 3. Product life cycle of ASOS
Source: The Times 100, NA

Moreover, as product life cycle of fashion industry is tremendously short, a well-established supply chain is essential for ASOS. For a normal ASOS-branded dress, it goes through 4 stages: introduction, growth, maturity and decline (Kevsic, 2008). These stages passed in a surprisingly short period, and therefore ASOS keeps on launching new designs and products (The Times 100, NA). The process of ASOS supply chain can be divided by ASOS own-branded and partnerships with other fashion brands.

For a dress of ASOS own-branded, design and material will be decided by ASOS in-house designer and then send back to suppliers for production. After the dress is made, producers will send the final dress back to

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